Lately I got a question how a development team should deal with bugs which are found by the development team during a Sprint in progress?

In my opinion it’s not good to postpone fixing bugs to a later date or other Sprint. Bugs should always be fixed as soon as possible before other development work may continue. In the long run it will always be cheaper to fix bugs as they come. Putting them off to the (near) future may result in a more complex bug and will also require a larger context switch for the person who will be responsible for fixing the bug. Also make sure that bugs are visible for the entire development team. If you are using work items, be sure to create a work item for the new bug and enforce that the developer associates this work item to his check-in/changeset that will fix the bug. Maximum traceability! A good reflex to a new bug would also hold in to create a new (unit) test for regression testing in next releases.